Form 200A, Listing Agreement, Authority to Offer for Sale

Dive Into OREA Form 200A

When it comes to real estate transactions in Ontario, Canada, one legal document you need to familiarize yourself with is the Ontario Real Estate Association (OREA) Form 200A. This form is essential when you are considering selling a property. The OREA Form 200A, or more commonly known as the Listing Agreement - the Authority to Offer for Sale, sets out the terms and conditions between the seller and the agent, including agent’s commission, asking price, property details, and the partnership's duration. 

Significance of OREA form 200A 

The Listing Agreement Authority to Offer for Sale is the principle behind Form 200A. By using Form 200A, a property seller empowers the real estate agent to list and advertise their property for sale without, however, handing them the authority to actually sell the property. 

OREA form 200 vs 200A: decoding the difference 

You might be a bit confused about the choice of OREA Form 200 and 200A. While both forms pertain to real estate listings in Ontario, they are used under different scenarios. OREA Form 200, known as the Listing Agreement - Agreement for Sale, is employed when real estate professionals hold an exclusive listing for the sale of a property, with the agreement typically between the broker and the property owner.

On the other hand, the OREA Form 200A is used relatively more usually. It is applicable when agents are listing a property for sale on behalf of the owners, with the owner(s) granting sole permissions to the agent to enlist the property. Despite their minor differences, both forms capture and lay out the specifics required to ensure a secure selling process.

How to Fill Out Form 200A

Here is a detailed step-by-step guide on completing the OREA Listing Agreement, Authority to Offer for Sale:

1. Begin by identifying the Listing Brokerage details at the top of the form, including the brokerage name and contact information, and entering them in the designated spaces.
2. Next, fill in the seller's details in the space provided. This includes the seller's name and the formal address of the property being offered for sale.
3. Enter the listing period dates, specifying the start and end dates for when the property will be marketed. Ensure these dates are clearly stated to define the duration of the listing agreement.
4. Specify the listing price in Canadian dollars and detail any other terms related to the sale that have been agreed upon with the brokerage. This will guide the brokerage in marketing and negotiating the property sale.
5. Under the "Definitions and Interpretations" section, read through the descriptions to understand how terms like "Seller" and "Buyer" are used throughout the agreement, ensuring clarity in roles throughout the document.
6. In the "Commission" section, specify the commission percentage or amount the seller agrees to pay the Listing Brokerage upon the successful sale of the property. Also, include details about the sharing of the commission with any cooperating brokerage involved in the sale.
7. Address any disclosures related to the property under the "Marketing" section by detailing how the property will be shown and advertised during the listing period. Include permissions for using signage and advertisements that identify the property.
8. In the "Warranty" section, the seller must warrant their authority to sell the property and disclose any third-party claims or interests, like easements or liens, that could affect the sale.
9. Acknowledge and provide for indemnifications and insurance, confirming that the property is insured and specifying the coverage. This protects the brokerage and any cooperating brokerages from liabilities arising from their activities related to the listing.
10. If applicable, ensure that spousal consent has been obtained and properly documented in the agreement, especially if required under local family law provisions.
11. Finally, the seller should sign and date the form, along with obtaining the signature of any required spouse, to confirm understanding and agreement to the terms set forth in Form 200a. Remember, here you may use the send to sign feature to get another party sign.